MorganAsh comments on BoE MPC decision

05 February 2026

Andrew Gething, managing director of MorganAsh, said:

“With a hold coming as no real surprise, the bigger story is the aftermath of changing expectations on interest rate cuts. That shifting view, from two cuts down to one, means we are likely returning to a ‘higher for longer’ scenario. This will be a painful realisation for those households which have long felt the burden of significant financial pressures. The cumulative impact of prolonged cost and inflationary pressures continues to strain household resilience. It places increasing focus on arrears levels and the growing protection gap – as highlighted again by the FCA’s interim findings of the Pure Protection Market Study.

“This backdrop only emphasises why customer vulnerability is so critical. Ongoing pressures can quickly tip customers into vulnerable circumstances. If we don’t know who these customers are, or we wait for them to make the first contact, we reduce the window needed to take meaningful action and achieve a positive outcome. Alongside capable tech, the guidance is out there to help firms resolve this and meet the requirements of Consumer Duty. While the path of interest rates remains hard to predict, we know with real certainty that firms need to be alive to the challenges of their vulnerable customers. This is the reality, no matter the direction of the base rate.”